Thursday, April 16, 2015

Oakland Monthly Cargo Volume Rebounds

By Mark Edward Nero

Containerized trade is rebounding at the Port of Oakland after two months of decline, according to newly released data. The port revealed April 15 that cargo volume in March increased 6.4 percent from a year ago.

That represents a significant turnaround from the 29.7 percent decrease recorded in January and a 33.7 percent drop in February. The port saw a grand total of 209,407 TEUs last month, according to data.

March was the first full month of cargo movement since the Pacific Maritime Association and International Longshore & Warehouse Union announced a tentative agreement on a new five-year contract. In the months before the agreement, productivity had slid significantly, with each side blaming the other for the congestion.

“We’re moving in the right direction again,” Port of Oakland Maritime Director John Driscoll said, “but we’ve still got plenty of work to do to make up for a slow start to the year.”

In February, only 35,923 import containers moved through Oakland. In March the figure jumped to 84,023. Oakland’s March imports increased 39 percent over 2014 totals. Exports declined 16 percent.

The port said exports decreased because of the strong US dollar, which made American goods less affordable overseas. Exports were also constrained by vessels bypassing Oakland to recover time lost at congested Southern California ports. Those ships are now returning to Oakland.

Complete Port of Oakland cargo statistics are available at http://www.portofoakland.com/maritime/containerstats.aspx.

POLA Has 2nd Busiest Cargo Month in History

By Mark Edward Nero

Port of Los Angeles container terminals handled a total of 791,863 TEUs last month, making it the second-highest month in the port’s history, according to newly-released data.

The busiest single month remains October 2006, when the port moved 800,063 TEUs.

Containerized cargo volumes at the port increased 17.3 percent in March 2015 compared to the same period last year, according the data, which was released by the port April 16.

March was the first full month of cargo movement since the Pacific Maritime Association and International Longshore & Warehouse Union announced a tentative agreement on a new five-year contract. In the months before the agreement, productivity had slid significantly, with each side blaming the other for it.

Imports increased 31.5 percent last month, rising from 327,497 TEUs in March 2014 to 430,898 TEUs in March 2015. However, exports declined 22.5 percent, falling from 187,826 TEUs in March 2014 to 145,536 TEUs last month. Combined, total loaded imports and exports increased 11.86 percent, from 515,323 TEUs in March 2014 to 576,434 TEUs in March 2015. Factoring in empties, which increased 34.7 percent, overall volumes improved 17.3 percent last month.

“March container volumes were robust as our terminals worked aggressively to clear out the backlog of vessels,” Port of Los Angeles Executive Director Gene Seroka said. “The number of ships waiting at anchor has reduced significantly, labor levels are strong and our container terminals are extremely active. We continue to work on a series of initiatives to improve efficiencies throughout the supply chain.”

Next week, the Port of LA is expected to co-host a stakeholders meeting with the Port of Long Beach to discuss solutions to improve and strengthen the San Pedro Bay supply chain.

For the first three months of 2015, overall volumes – a total of 1.82 million TEUs – have decreased five percent compared to the same period in 2014.

Current and past data container counts for the Port of Los Angeles may be found at: http://www.portoflosangeles.org/maritime/stats.asp.

Puget Sound Maritime Achievement Award

The 2015 Puget Sound Maritime Achievement Award Selection Committee is accepting nominations for this year’s award to be announced at the Seattle Propeller Club’s June 1, 2015 Maritime Festival luncheon.

Nominations must be received by April 30, 2015 and may be e-mailed to rberkowitz@trans-inst.org. Nominations should include specific achievements of the candidate, particularly those impacting the Puget Sound maritime community, and a brief biography of the nominee. Industry segments represented by past recipients include steamship lines and agents, tug and barge operators, marine architects, shipyards, passenger and fishing vessel operators, port authorities, stevedores, and labor. Several paragraphs about the nominee are sufficient.

Port of Seattle Seeks Environmental Award Nominees

By Mark Edward Nero

Applications are now being accepted for the 2015 Marine Environmental Business of the Year, presented by the Port of Seattle and the Seattle Propeller Club.

The port is encouraging “companies that exemplify innovative and effective environmental programs” or projects that support the port’s efforts to become the “greenest and most energy efficient port in North America” to apply.

The winner will be announced at the Seattle Maritime Festival Luncheon on June 1 aboard Holland America Line’s Statendam at Terminal 91.

One award will be presented, but applications can be submitted in either of two categories. One is: Comprehensive Environmental Management Plan, which is designed to showcase a wide-ranging, all-inclusive environmental program that is part of the company culture and goes well beyond state and federal mandates.

The other category is: Environmental Initiative, which is designed to showcase a specific initiative, process and/or project. The project does not have to be completed, but must be underway, to be considered in this category. Companies eligible to apply must have maritime-related operations in Seattle, and nominated programs and projects must have taken place partially or entirely in the Puget Sound region during 2014.

A committee comprised of industry, community and regulatory representatives will review applications and select the award recipients. The port says applications will be rated based on: sustainable practices, innovation, leadership, commitment, air and water pollution prevention and regulatory compliance.

Also, the port says, applications will be considered based on: successful efforts to incorporate environmentally sustainable practices into overall maritime/industrial operations or a specific project or initiative; innovation, leadership and/or commitment toward environmental stewardship, especially air and water pollution prevention, with a particular emphasis on recent accomplishments that benefit the environment of the Puget Sound region and compliance with local, state and federal environmental regulations and requirements.

Each applicant is expected to describe the environmental practice(s) and results achieved using an online application form available at http://cdn1.assets.sites.launchrocketship.com/347d2f3d-2378-4e6c-a887-013c51415025/files/5e1aefc7-edc0-480d-b11b-4af0641edb70/meba_application.pdf.

Electronic copies of all applications are required and should be sent to: MEBAward@seattlepropellerclub.org. Additional documentation is encouraged but must not exceed four 8.5”x 11” pages.

All applications, supporting material and fees must be received by 5 p.m., Tues., May 5.

Kvichak Wins $32 Million Ferries Contract

By Mark Edward Nero

Kvichak Marine Industries, a Seattle-based subsidiary of Vigor Industrial, has been awarded a shipbuilding contract by the Water Emergency Transportation Authority of San Francisco for the design and construction of two all-aluminum 400 passenger-only ferries.

The vessel replacement project is part of WETA’s ongoing fleet renewal process, the organization’s executive director, Nina Rannells, said. The new vessels will replace two vessels in the Transportation Authority’s 12-vessel fleet that are approaching the end of their expected life.

The 135-foot by 38-foot, all-aluminum catamarans, which are designed by Australian company Incat Crowther, will have a draft of 6.75 feet and will feature MTU 12V4000 M64+ EPA Tier III engines rated 1,950 BHP at 1830 RPM, coupled with ZF7600 reduction gears. An exhaust after treatment system will also be included. Service speed will be 27 knots.

Kvichak has awarded Nichols Brothers Boat Builders the subcontract to provide the bolt-on superstructure for the project. From 2007 to 2010, the two companies collaborated on the delivery of four 118-foot, environmentally friendly ferries currently in service for WETA in the San Francisco Bay area.

The latest catamarans are to be the 700th and 701st vessels built by Kvichak. They’re anticipated to be in service by the summer of 2017.

According to the Transportation Authority, the contract is worth $32 million and is being funded through a combination of Federal Transit Administration grant funds, bridge tolls, grant funds, and a transportation sales tax.

Tuesday, April 14, 2015

100 Sickened on Cruise Ship Arriving in San Diego

By Mark Edward Nero

More than 100 people, including dozens of passengers and a small number of crew members, reported falling ill during a voyage of the Celebrity Infinity, a Celebrity Cruises ship that docked in San Diego on April 13 after a two-week voyage. 106 of the 2,117 passengers and five of the 964 crew members onboard the ship are suspected of having contracted the norovirus gastrointestinal illness, according to the Centers for Disease Control. The predominant systems reported were vomiting and diarrhea.

“One CDC Vessel Sanitation Program environmental health officer and one epidemiologist boarded the ship in San Diego, CA on April 13, 2015 to conduct an environmental health assessment and evaluate the outbreak and response activities,” the Centers for Disease Conyrol said in a news release about the situation. “Specimens have been collected and have been tested by CDC to determine the causative agent for this outbreak is norovirus.”

The Celebrity Infinity primarily sails to Canada and Alaska. Previous outbreaks of gastrointestinal sickness occurred on the vessel in 2013 and 2006.

This marks the fourth outbreak of sickness this year on cruise ships calling at the US, but the first on the West Coast. The other outbreaks occurred on the Norwegian Pearl out of Miami; Celebrity Equinox in Port Everglades, Florida; and Grandeur of the Seas, which sails out of Baltimore.

Congressman: LNG Carriers Could Revitalize US Shipbuilding

By Mark Edward Nero

The ranking member of the House Committee on Transportation and Infrastructure’s Subcommittee on the Coast Guard and Maritime Transportation, says the export of liquefied natural gas could strengthen the American shipbuilding industry.

Speaking at the Bay Planning Coalition’s 2015 Decision Makers Conference in Oakland on April 9, US Rep. John Garamendi (D-CA) delivered a speech focused on America’s pivotal opportunity to create thousands of American jobs by revitalizing shipbuilding.

“We’re not building big ships in the United States except for the US Navy,” Garamendi said. “What if we recognized that the export of liquefied natural gas, when and where deemed appropriate, provides us with a unique opportunity to rebuild the American shipbuilding industry and strengthen our Merchant Marine.”

When America exports LNG, he said, it needs to be moved by American sailors on American ships.

“In doing so, we will revitalize America’s shipbuilding industry in a big way,” he said. “We have an opportunity to make sure that a very significant part of the American economy has an opportunity to blossom and grow – not just the shipyards – but the entire supply chain: electronics, engines and more.”

Garamendi also argued in his remarks that Americans need to ensure that harbor maintenance funds aren’t siphoned off to projects unrelated to improving harbors.

“Harbor maintenance fund money should be used for what is one of the principal economic opportunities this nation possesses: our ports,” he said.

Puget Sound Maritime Achievement Award

By Mark Edward Nero

The 2015 Puget Sound Maritime Achievement Award Selection Committee is accepting nominations for this year’s award to be announced at the Seattle Propeller Club’s June 1, 2015 Maritime Festival luncheon.

Nominations must be received by April 30, 2015 and may be e-mailed to rberkowitz@trans-inst.org. Nominations should include specific achievements of the candidate, particularly those impacting the Puget Sound maritime community, and a brief biography of the nominee. Industry segments represented by past recipients include steamship lines and agents, tug and barge operators, marine architects, shipyards, passenger and fishing vessel operators, port authorities, stevedores, and labor. Several paragraphs about the nominee are sufficient.

Vigor Delivers 2nd of 3 Ferries

By Mark Edward Nero

The brand new 144-car ferry MV Samish is officially set take its place amid Washington state’s ferry system. Washington State Ferries accepted the Samish from builder/contractor Vigor Industrial on April 10.

Following two months of sea trials and crew training, the $126 million ferry is expected to begin service on the Anacortes/San Juan Islands route on June 14, in time for the start of the summer sailing season.

“I’m delighted to take delivery of the Samish,” Ferries Assistant Secretary Lynne Griffith said. “More than 23 million passengers rely on our ferry system every year. Adding another Olympic Class vessel represents the state’s continued commitment to replace older vessels and plan for the future.”

The new ferry’s name comes from a tribal word meaning, "giving people." It is the second of three funded, Olympic class vessels to replace the aging, midcentury-era Evergreen State class vessels.

The $126 million Samish offers an ADA-compliant, car-deck restroom; flexible seating configurations; improved heating and ventilation; and wider stairwells and passageways.

“The Samish represents the very best in state-of-the-art ferry design and has helped strengthen the maritime community by supporting more than 500 jobs throughout the Puget Sound,” Vigor Fab sales director Bryan Nichols said.

Washington First Lady Trudi Inslee is scheduled to christen the vessel at a May 20 open house at the Anacortes ferry terminal.

Vigor Industrial’s US Fab Division has a contract with Washington State Ferries for design and construction of three 144-car ferries. The first, Tokitae, was completed in March 2014 and pressed into service in June 2014. Construction of the third, Chimacum, began in fall 2014.

Oakland Looking to Become Premier Port

By Mark Edward Nero

New development projects at the Port of Oakland could turn the port into a first port-of-call for international shipping lines, an Oakland official said April 9 during the Bay Planning Coalition’s 2015 Decision Makers Conference.

The port is strengthening its role as a premier global logistics center, Oakland Maritime Business Development Manager Beth Frisher told Bay Area leaders from the public, private and nonprofit sectors at the Decision Makers Conference, a daylong event held at the Oakland Scottish Rite Center.

The key, Frisher said, is a 360-acre trade and logistics center being built by the Port and City of Oakland on the former Oakland Army Base. The center is envisioned as attracting additional import and export cargo. The port is currently building a railyard at the site to be followed by new transload warehouses.

When completed, commodities shipped in bulk could be transferred to containers for export, and imports can be transloaded into 53-foot domestic containers and then placed on rail cars for inland shipment.

Frisher said the new capabilities could convince shipping lines to make Oakland their first US call. All the top container carriers currently have weekly services in Oakland, but stop first in Southern California.

Two other projects in the planning stage are expected to generate more cargo growth, Frisher added: a cold-storage facility and a grain transload operation. Both would permit bulk shipments of agricultural products such as beef and grain to be transferred from rail to containers for overseas delivery.